Italy: Draft budget law 2021 officially published


Further to TaxFlash T20020 Clearstream Banking1 inform customers that the Italian budget law for 2021 was approved and published in the Official Gazette No. 322 on 30 December 2020 (Law n°178)



EU/EEA investment funds may apply for a tax exemption on Italian-sourced dividends and capital gains, as foreseen by Law No. 178 (Article 1, paragraphs 631, 632 and 633), on condition that the investment fund:

  • complies with Directive 2009/65/EC of 13 July 2009 of the European Parliament and of the Council (UCITS IV directive); or
  • if it does not comply with the UCITS IV Directive, has a fund manager or managing company subject to regulatory supervision in the foreign country where it is established in accordance with Directive 2011/61/EU of 8 June 2011 of the European Parliament and of the Council in EU Member States and in the Agreement on the European Economic Area Member States allowing for an adequate exchange of information (AIMF directive).

Impact on customers

The operational procedure and documentation to be provided to benefit from the exemption on dividends are being analysed with Clearstream Banking’s local partner. Further information will be communicated as soon as it is available.

Clearstream Banking does not assist in the process of capital gain tax. Customers must seek the advice of their tax advisor in that respect.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.


1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.